Forexpros – The U.S. dollar was up against the Swiss franc on Tuesday, as market sentiment remained cautious ahead of a European Union summit on Wednesday, amid speculation that leaders could agree on fresh measures to tackle the crisis in the region.
USD/CHF hit 0.9417 during European morning trade, the session high; the pair subsequently consolidated at 0.9415, gaining 0.47%.
The pair was likely to find support at 0.9366, Monday’s low and a four-day low and resistance at 0.9469.
Market participants remained wary ahead of Wednesday’s European Union summit, amid concerns over a divide between France’s new President Francois Hollande, who favors measures designed to support growth and pro-austerity Germany.
President Hollande was expected to propose the introduction of joint euro bonds at the summit, but Germany has repeatedly resisted the idea, arguing they would lessen pressure for heavily indebted countries to get their finances in order.
Sentiment was also hit after the Organization for Economic Cooperation and Development cut its growth forecasts for the euro zone for 2012 and 2013.
ODEC warned that a “combination of enduring financial fragility, rising unemployment and social pain may spark political contagion and adverse market reaction.”
The Swissie was almost unchanged against the euro, with EUR/CHF dipping 0.01% to hit 1.2010.
Later in the day, the U.S. was to release industry data on existing home sales.
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